Title: Relationship between Aditya Birla capital limited with Nifty50
Author: Anushri Pappu
Introduction: Aditya Birla Capital Digital Limited (ABCDL) is a wholly owned subsidiary of Aditya Birla Capital Limited. Aditya Birla Capital Limited (“ABCL”) is the holding company for the financial services businesses of the Aditya Birla Group. Through its subsidiaries / joint ventures (JVs), ABCL provides a comprehensive suite of financial solutions across Loans, Investments, Insurance, Payments, and Cards to serve the diverse needs of customers across their lifecycle. Powered by about 47,000 employees, the businesses of ABCL have a nationwide reach with over 1,462 branches and more than 2,00,000 agents/channel partners along with several bank partners.
Objective: To find Beta(ß) of Aditya Birla Capital Limited and its significance.
Data collection: The data of both Nifty50 and Aditya Birla Capital limited were downloaded from Nseindia.com for the period starting from 1st February 2023 to 31st January 2024.The historical data collected was calculated using Microsoft Excel to get Friday closing prices for both, the index and company. Weekly returns of Aditya Birla Capital LTD were regressed on weekly returns of Nifty50.
Data analysis:
Aditya Birla Capital LTD share = -0.104+1.109 NIFTY50
The above equation shows the relationship of Aditya Birla Capital ltd and Nifty50. Negative signs means inverse relationship. If weekly return of Nifty50 rises, Aditya Birla ltd’s returns falls. If Nifty50 rises by 1 unit, Aditya Capital Ltd will fall by 1.109 units.
T-stat for b is and the p value is 0.002 which is less than 0.05, meaning b is statistically significant at 5% level, meaning price does play a significant role for demand. The Number of observations is 47.
R-square is 0.183, meaning 18.3% of Aditya Capital Ltd share are explained by the movement in Nifty, Balance meaning 81.7% is error due to the variables not taken in the model.
F is 10.116, the P value for which is 0.002 which is less than 0.05 so the overall model is statistically significant
Conclusion
As β=1.109, is more than 1, therefore Aditya Birla Capital LTD is good for short term investment.